ONGC gets Rs 22 crore GST demand order, likely to appeal
ONGC receives GST demand order of Rs 22 crore for the period of April 1, 2020, to May 14, 2020, including recovery of Rs 11.31 crore, interest of Rs 9.50 crore, and penalty of Rs 1.13 crore.
Oil Major PSU, ONGC Ltd from the Joint Commissioner, State Tax, Circle C, Jodhpur, for the period between April 1, 2020, and May 14, 2020, receives a Goods and Services Tax (GST) demand order equal to 22 crore.
"An Order, dated 25.02.2025 has been received through email i.e. 17.03.2025 from the Office of Joint Commissioner, State Tax, Circle C, Jodhpur for the Period of 01.04.2020 to 14.05.2020," ONGC stated in a regulatory filing. Issued under Sections 73 and 50 of the CGST Act, 2017, the order included a GST recovery demand of Rs 11.31 crore, interest of Rs 9.50 crore, and a penalty of Rs 1.13 crore.
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The lawsuit relates to the alleged non-payment of GST on royalty for Vedanta and CEHL, two joint venture (JV) partners with 35% participation stake each in the unincorporated JV for the Pre-NELP block RJ-ON-90/1. "Based on PSC and GST Act, the firm believes that: (a) GST is not leviable on Royalty and, (b) ONGC is not obligated to pay GST on Royalty for other JV partner's share. It is relevant to note that this issue's leviability and shareability concern is under dispute right now," the company added.
Given the scope of its activities, ONGC said the ruling will not have any appreciable operational or financial impact. "No notable influence considering the Company's size and scope of activities. The Company will check the order and submit an appeal before the suitable venue', it said.
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